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Offering Voluntary Employee Insurance May Decrease Your Worker’s Compensation Claims

A recent study shows that employers who provide voluntary employee benefits such as accident and disability insurance see fewer workers’ compensation claims. The research, conducted in July 2014 by Aflac and Research Now, indicates that 40 percent of employers who implemented voluntary employee accident insurance experienced a decrease in workers compensation claims. The biggest benefit was to large companies, who saw a 50 percent reduction in claims, but medium and small businesses saw reductions of 38 percent and 36 percent respectively.

Workers Compensation Claims Photo

Workers Compensation Claims Photo

Based on a survey of 945 large, medium and small business across the United States, the study reports similar decreases in workers compensation claims at companies that implemented voluntary employee disability insurance. Additionally, all respondents said that both voluntary accident and voluntary disability insurance decreased employee absenteeism by about 30 percent.

Benefits of Voluntary Employee Accident and Disability Insurance

As full implementation of the Affordable Care Act gets underway, voluntary employee insurance programs provide additional options to employers who want to increase employee protections without negatively impacting operating costs. The cost of employer-sponsored voluntary insurance is borne by the employee, who receives the benefit of more affordable group rates and a benefits package tailored to his and his family’s needs.

Voluntary employee benefit programs also provide intangible benefits, such as greater employee satisfaction, productivity and morale.  According the 13th Annual Met Life U.S. Employee Benefit Trends Study, when a company offers a broad range of voluntary benefits, employees are:

  • More loyal
  • More likely to stay at their jobs
  • More likely to recommend the company as a great place to work.
  • More satisfied with their jobs

Further, over 70 percent of employees say that having additional benefits or insurance protections increases their sense of financial security and peace of mind, which correlates strongly with employee productivity.

Common Voluntary Employee Insurance Programs You Can Offer Today

As more and more employers provide core benefits packages that cover medical, dental, vision care and prescription drugs, voluntary benefits have become more diverse. Some optional coverages that are available today include:

  • Long-term Disability
  • Short-term Disability
  • Accident Insurance and Accidental Death & Dismemberment
  • Critical Illness Insurance
  • Long-term Care Insurance
  • Cancer Insurance
  • Legal Insurance
  • Identify Theft Protection

According to Met Life’s study, employee satisfaction increases dramatically when employers offer employees between 11 and 15 options and is lowest when they offer fewer than five.

Todays’ insurance marketplace is large and complex, so don’t try to make important decisions about employee benefits on your own. Our business insurance experts are available to help you review your options and determine what’s best for you and your employees. Contact us at 516-292-3780, Monday through Friday, 9 a.m. to 6 p.m. to set up and appointment, or request a free consultation online now.


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Floyd Arthur

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